| Thu 11 Aug 2011, 8:00 | | MPT - Mpact Limited - Unaudited interim results for the half-year ended 30 |
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MPT
MPT
MPT - Mpact Limited - Unaudited interim results for the half-year ended 30
June 2011
Mpact Limited
(Incorporated in the Republic of South Africa)
(Company registration number 2004/025229/06)
JSE Share Code: MPT JSE ISIN: ZAE 000156501
("Mpact" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE HALF-YEAR ENDED 30 JUNE 2011
MPACT GROUP PROFILE
The Group is one of the largest South African packaging producers, involved in
the manufacture and supply of paper and plastic packaging products. The paper
business is integrated across the recycled paper-based corrugated packaging
value chain and comprises three divisions being recycling, packaging and
industrial paper and corrugated. The plastic business manufactures rigid
plastic packaging such as bottles, containers and preforms for the fast moving
consumer goods markets; styrene trays and plastic jumbo bins. The Group
employs approximately 3 500 people across its 29 operations in South Africa,
Namibia, Mozambique and Zimbabwe.
Mpact was listed on the Main Board of the securities exchange operated by the
JSE Limited ("JSE") on 11 July 2011.
GROUP PERFORMANCE REVIEW
Revenue of R3,006 million was in line with the comparable prior year period
with higher average selling prices offset by lower volumes in the paper
business and in Paperlink, the paper merchanting business, which was sold at
the end of March 2011.
Operating profit of R192 million was 12,5% up on the comparable prior year
period.
Paper segment
Revenue was 2.2% higher at R2,169 million. Sales volumes for the first quarter
exceeded the comparable prior year period but lower demand in the second
quarter resulted in a net decline in external sales volumes for the half year
period compared to prior year.
Operating profit of R245 million was 12.8% better than the comparable prior
year period attributable mainly to higher average selling prices and cost
savings.
Plastics segment
Revenue of R715 million was 15.5% higher than the comparable prior year period
due to increased volumes and higher average selling prices. Selling prices
increased on the back of higher raw material costs.
Operating profit for the period increased by 18.5% to R30 million which
includes insurance income of R5 million. The comparable prior year period
operating profit included insurance income of R17 million and an impairment
charge of R4,8 million.
Special items
Demerger and listing transaction costs reported to 30 June 2011 amount to R5,4
million. It is estimated another R43 million of demerger and listing
transaction costs will be incurred in the second half of the year following
the successful demerger and listing of Mpact in July.
Finance costs
Finance costs of R201 million were lower than the comparable prior year period
by 7,6%.
On 5 July 2011 net debt was substantially reduced as part of the capital
restructuring prior to listing on the JSE on 11 July 2011. Consequently, net
interest costs in the second half of the year will be substantially lower than
the first half.
Tax
The effective tax rate is 31.9%, which is the normal company income tax rate
of 28% adjusted for non-deductible expenses.
Earnings per share
In terms of a special resolution passed on 28 April 2011 the number of
ordinary shares in issue was increased from 159,950 ordinary shares to
23,192,750 ordinary shares following a share split. Thus the number of
ordinary shares in issue on 30 June 2011 was 23,192,750.
On 5 July 2011 an additional 140,853,726 ordinary shares were issued to the
then shareholders as part of Mpact`s capital restructuring prior to listing.
Consequently the Company listed on 11 July 2011 with 164,046,476 issued
ordinary shares.
On the basis of 164,046,476 issued ordinary shares, basic earnings per
ordinary share for the six months ended 30 June 2011 are 1.0 cent compared to
a loss per ordinary share of 19.2 cents for the six months ended 30 June 2010,
and headline earnings per ordinary share for the six months ended 30 June 2011
are 0.8 cents compared to a headline loss per ordinary share of 18.4 cents for
the six months ended 30 June 2010.
Borrowings
Net debt at 30 June 2011 was R3,697 million, an increase of R50 million from
31 December 2010. Cash proceeds from the sale of Paperlink amounted to R93
million.
On 5 July 2011 the following major changes to net debt occurred pursuant to
the demerger of Mpact from Mondi and the listing on the JSE:
A further 140,853,726 ordinary shares were issued for proceeds of R2,090
million
The Company drew down R1,790 million against new banking facilities
Existing bank loans of R1,144 million were settled
All outstanding shareholder loans amounting to R2,833 million were repaid.
At the date of listing, 11 July 2011, the Group`s net debt amounted to R1,718
million which is a reduction of R1,979 million, compared to 30 June 2011.
Dividends
No interim dividend is proposed.
Audit
The information set out in the announcement has not been audited or reviewed
by the Company`s external auditors.
OUTLOOK
Earnings in the second half of the year are expected to be enhanced as a
result of the significant capital restructuring on 5 July 2011, in which net
debt was reduced to R1,718 million (30 June 2011: R3,697 million).
Due to seasonal effects, trading in the second half of the year is typically
better than the first.
However, demand remains a concern due to ongoing economic weakness and
consumer uncertainty. Demand is also likely to be impacted by increased
competition from direct and indirect imports on the back of the continued
strength of the rand.
The paper manufacturing and plastics businesses were affected by industry wide
industrial action in July. While it is anticipated that some of the lost
production and sales will be recovered before the end of the financial year,
the full extent will only be known in due course.
CHANGE IN DIRECTORATE
Due to the demerger from Mondi and the listing of Mpact on the JSE, the
following changes to the Board of directors were made:
The following directors were appointed on 21 April 2011:
AJ Phillips (Non-executive Chairman); EL Leong (Executive director); NP
Dongwana (Non-executive director); NB Langa-Royds (Non-executive director);
TDA Ross (Non-executive director and Chairman of the Audit Committee)
The following directors and alternate directors resigned on 4 May 2011:
DA Hathorn; ACW King; PA Laubscher; KA Mills; MC Ramaphosa; RM Smith; RP von
Veh; R Govender; K Sewpersad
On 11 July 2011, WR Somerville was appointed Company secretary.
AJ Phillips BW Strong
Chairman Chief Executive Officer
11 August 2011
Condensed consolidated statement of comprehensive income
(Unaudited) (Unaudited)
Six months ended Six months ended
30 June 2011 30 June 2010
Note Rm Rm
Revenue 4 3 006.3 2 968.5
Cost of sales (1 829.9) (1 861.7)
Gross margin 1 176.4 1 106.8
Administration and other
operating expenditure (978.7) (931.1)
Special items 6 (5.4) (4.8)
Operating profit 5 192.3 170.9
Share of associates` profit /
(loss) 1.6 (0.2)
Total profit from operations
and associates 193.9 170.7
Finance costs 7 (200.7) (217.1)
Investment income 15.9 18.6
Profit / (loss) before tax 9.1 (27.8)
Tax (charge) / credit (2.9) 2.7
Profit / (loss) for the period
from continuing operations 6.2 (25.1)
Other comprehensive income /
(loss), net of taxation (1.3) 12.0
Effect of options to equity holders - -
Effect of cash flow hedges 3.7 (5.4)
Actuarial gains / (losses) and
surplus restrictions on post-
retirement benefit schemes (5.8) 14.4
Exchange differences on
translation of foreign operations 0.2 -
Taxation on other comprehensive income 0.6 3.0
Total comprehensive income / (loss) 4.9 (13.1)
Profit / (loss) attributable to:
Equity holders of Mpact Limited 1.7 (31.5)
Non-controlling interests in
subsidiaries 4.5 6.4
Profit / (loss) for the period 6.2 (25.1)
Comprehensive income / (loss)
attributable to:
Equity holders of Mpact Limited 0.4 (19.5)
Non-controlling interests in
subsidiaries 4.5 6.4
Total comprehensive income / (loss) 4.9 (13.1)
Earnings / (loss) per share
(cents) 8.
Basic earnings / (loss) per
share 1.0 (19.2)
Diluted earnings /
(loss) per share 1.0 (19.2)
Basic headline earnings /
(loss) per share 0.8 (18.4)
Diluted headline
earnings / (loss) per share 0.8 (18.4)
(Audited)
Year ended
% 31 December 2010
Change Rm
Revenue 1.3 6 258.7
Cost of sales (1.7) (3 859.7)
Gross margin 6.3 2 399.0
Administration and other operating expenditure 5.1 (1 913.7)
Special items 12.5 (6.3)
Operating profit
12.5 479.0
Share of associates` profit / (loss) 3.4
Total profit from operations and associates 13.6 482.4
Finance costs (7.6) (434.6)
Investment income (14.5) 48.1
Profit / (loss) before tax 95.9
Tax (charge) / credit (46.4)
Profit / (loss) for the period from continuing
operations 49.5
Other comprehensive income / (loss), net of
taxation (7.1)
Effect of options to equity holders 3.0
Effect of cash flow hedges (7.5)
Actuarial gains / (losses) and surplus restrictions
on post-retirement benefit schemes (13.7)
Exchange differences on translation of foreign
operations (0.4)
Taxation on other comprehensive income 11.5
Total comprehensive income / (loss) 42.4
Profit / (loss) attributable to:
Equity holders of Mpact Limited 36.8
Non-controlling interests in subsidiaries 12.7
Profit / (loss) for the period 49.5
Comprehensive income / (loss) attributable to:
Equity holders of Mpact Limited 29.7
Non-controlling interests in subsidiaries 12.7
Total comprehensive income / (loss) 42.4
Earnings / (loss) per share (cents)
Basic earnings / (loss) per share 22.4
Diluted earnings / (loss) per share 22.4
Basic headline earnings / (loss) per share 23.1
Diluted headline earnings / (loss) per
share 23.1
Condensed consolidated statement of financial position
(Unaudited)
As at
30 June 2011
Note Rm
ASSETS
Non-current assets 3 107.2
Goodwill and other intangible assets 1 080.5
Property, plant and equipment 1 921.7
Other non-current financial assets and investment in
associates 71.0
Deferred tax assets 34.0
Current assets 2 225.8
Inventories 730.7
Trade and other receivables 1 270.1
Cash and cash equivalents 225.0
Assets classified as held for sale 12 -
Total assets 5 333.0
EQUITY AND LIABILITIES
Capital and reserves
Stated capital/Share capital and premium 10 244.3
Other reserves (83.0)
Accumulated loss (55.6)
Equity attributable to the equity holders of Mpact Limited 105.7
Non-controlling interests in subsidiaries 77.4
Total equity 183.1
Non-current liabilities 3 919.6
Long-term borrowings 11 3 777.9
Retirement benefit obligations 69.2
Deferred taxation liabilities 12.4
Other non-current liabilities 60.1
Current liabilities 1 230.3
Short-term borrowings 11 142.8
Trade and other payables and provisions 1 075.1
Current tax liabilities 12.4
Liabilities directly associated with assets classifed as
held for sale 12 -
Total equity and liabilities 5 333.0
(Unaudited) (Audited)
As at As at
30 June 2010 31 December 2010
Rm Rm
ASSETS
Non-current assets 3 156.3 3 125.9
Goodwill and other intangible assets 1 108.1 1 087.6
Property, plant and equipment 1 906.5 1 897.9
Other non-current financial assets and
investment in associates 62.6 89.6
Deferred tax assets 79.1 50.8
Current assets 2 225.8 1 959.6
Inventories 698.3 680.6
Trade and other receivables 1 288.8 1 177.6
Cash and cash equivalents 238.7 101.4
Assets classified as held for sale - 171.0
Total assets 5 382.1 5 256.5
EQUITY AND LIABILITIES
Capital and reserves
Stated capital/Share capital and premium 244.3 244.3
Other reserves (62.7) (78.1)
Accumulated loss (126.6) (58.3)
Equity attributable to the equity holders of
Mpact Limited 55.0 107.9
Non-controlling interests in subsidiaries 67.2 73.2
Total equity 122.2 181.1
Non-current liabilities 3 943.8 3 761.3
Long-term borrowings 3 766.2 3 589.8
Retirement benefit obligations 45.6 73.5
Deferred taxation liabilities 29.1 20.3
Other non-current liabilities 102.9 77.7
Current liabilities 1 316.1 1 223.4
Short-term borrowings 149.2 151.5
Trade and other payables and provisions 1 155.8 1 060.1
Current tax liabilities 11.1 11.8
Liabilities directly associated with assets
classifed as held for sale - 90.7
Total equity and liabilities 5 382.1 5 256.5
Condensed consolidated statement of cash flows
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2011 30 June 2010 31 December 2010
Rm Rm Rm
Operating cash flows
before movements in
working capital 342.4 332.9 807.8
Net increase in
working capital (109.4) (52.0) (128.4)
Cash generated from
operations 233.0 280.9 679.4
Taxation paid (5.5) (22.9) (30.0)
Net cash inflows
from operating activities 227.5 258.0 649.4
Investment in property,
plant and equipment (167.0) (137.8) (269.4)
Other investing activities 90.5 6.7 (4.9)
Net cash outflows
from investing activities (76.5) (131.1) (274.3)
Issue of shares - - -
Net proceeds from
(repayment of) borrowings 184.9 13.6 (164.4)
Interest paid (189.5) (210.3) (416.3)
Other financing activities (17.2) (1.7) (8.8)
Net cash outflows
from financing activities (21.8) (198.4) (589.5)
Net increase/(decrease)
in cash and cash equivalents 129.2 (71.5) (214.4)
Cash and cash equivalents at
beginning of the period 95.8 310.2 310.2
Cash and cash equivalents
at end of the period 225.0 238.7 95.8
Cash and cash equivalents includes overdrafts.
Condensed consolidated statement of changes in equity
Stated
capital/Share Share-based Cash flow
capital and payments hedge
premium reserves reserves
Rm Rm Rm
Balance 1 January 2010 244.3 9.6 (19.7)
Total comprehensive income 1.6
Issue of shares under employee
share scheme (1.8)
Share scheme charges for the year 3.3
Dividends paid to non-controlling
shareholders
Reclassification (0.3)
Contribution paid to Mondi share
incentive scheme (2.4)
Balance at 30 June 2010 (unaudited) 244.3 8.4 (18.1)
Total comprehensive income (1.5)
Share scheme charges for the year 3.8
Dividends paid to non-controlling
shareholders
Contribution paid to Mondi share
incentive scheme (0.1)
Balance at 31 December 2010
(audited) 244.3 12.1 (19.6)
Total comprehensive income 2.7
Issue of shares under employee
share scheme (0.6)
Share scheme charges for the year 3.8
Dividends paid to non-controlling
shareholders
Reclassification (0.4)
Contribution paid to Mondi share
incentive scheme (6.4)
Balance at 30 June 2011 (unaudited) 244.3 8.5 (16.9)
Post-
retirement
benefits Other
reserves reserves
Rm Rm
Balance 1 January 2010 6.5 (69.9)
Total comprehensive income 10.4
Issue of shares under employee share scheme
Share scheme charges for the year
Dividends paid to non-controlling shareholders
Reclassification
Contribution paid to Mondi share incentive scheme
Balance at 30 June 2010 (unaudited) 16.9 (69.9)
Total comprehensive income (20.2) 2.6
Share scheme charges for the year
Dividends paid to non-controlling shareholders
Contribution paid to Mondi share incentive scheme
Balance at 31 December 2010 (audited) (3.3) (67.3)
Total comprehensive income (4.2) 0.2
Issue of shares under employee share scheme
Share scheme charges for the year
Dividends paid to non-controlling shareholders
Reclassification
Contribution paid to Mondi share incentive scheme
Balance at 30 June 2011 (unaudited) (7.5) (67.1)
Total
attributable to
equity holders
Accumulated of Mpact
loss Limited
Rm Rm
Balance 1 January 2010 (97.2) 73.6
Total comprehensive income (31.5) (19.5)
Issue of shares under employee share scheme 1.8 -
Share scheme charges for the year 3.3
Dividends paid to non-controlling shareholders -
Reclassification 0.3 -
Contribution paid to Mondi share incentive scheme (2.4)
Balance at 30 June 2010 (unaudited) (126.6) 55.0
Total comprehensive income 68.3 49.2
Share scheme charges for the year 3.8
Dividends paid to non-controlling shareholders -
Contribution paid to Mondi share incentive scheme (0.1)
Balance at 31
December 2010 (audited) (58.3) 107.9
Total comprehensive income 1.7 0.4
Issue of shares under employee share scheme 0.6 -
Share scheme charges for the year 3.8
Dividends paid to non-controlling shareholders -
Reclassification 0.4 -
Contribution paid to Mondi share incentive scheme (6.4)
Balance at 30 June 2011 (unaudited) (55.6) 105.7
Non-
controlling Total
interests Equity
Rm Rm
Balance 1 January 2010 62.5 136.1
Total comprehensive income 6.4 (13.1)
Issue of shares under employee share scheme -
Share scheme charges for the year 3.3
Dividends paid to non-controlling shareholders (1.7) (1.7)
Reclassification -
Contribution paid to Mondi share incentive scheme (2.4)
Balance at 30 June 2010 (unaudited) 67.2 122.2
Total comprehensive income 6.3 55.5
Share scheme charges for the year 3.8
Dividends paid to non-controlling shareholders (0.3) (0.3)
Contribution paid to Mondi share incentive scheme (0.1)
Balance at 31
December 2010 (audited) 73.2 181.1
Total comprehensive income 4.5 4.9
Issue of shares under employee share scheme -
Share scheme charges for the year 3.8
Dividends paid to non-controlling shareholders (0 3) (0.3)
Reclassification -
Contribution paid to Mondi share incentive scheme (6.4)
Balance at 30 June 2011 (unaudited) 77.4 183.1
Other reserves consist of the option to equity holder reserves, revaluation
reserves and foreign currency translation reserves.
Notes
1. Basis of preparation
This unaudited interim report has been prepared using accounting policies
compliant with International Financial Reporting Standards (IFRS), the AC500
standards as issued by the Accounting Practices Board and is in compliance
with IAS 34: Interim Financial Reporting, the JSE Limited`s listing
requirements and the South African Companies Act. The accounting polices and
methods of computation used are consistent with those applied in the
preparation of the annual financial statements for the year ended 31 December
2010, except where the group has adopted new or revised accounting standards
and interpretations of those standards.
The preparation of these condensed consolidated unaudited interim financial
results for the half-year ended 30 June 2011 was supervised by the Chief
Financial Officer, Mr EL Leong CA(SA).
2. Accounting policies
The accounting polices and methods of computation used are consistent with
those applied in the preparation of the annual financial statements for the
year ended 31 December 2010.
The following new or revised accounting standards and interpretations, which
had no impact on the Group, were adopted in the current period:
- IAS 24 : Related Party disclosure.
- IAS 32 : Financial Instrument presentation.
- IFRIC 14 : IAS 19 - The limit on a Deferred Benefit Asset,
Minimum Funding Requirements and their Interaction.
November 2009 amendments with respect to voluntary prepaid
contributions.
- IFRIC 19 : Extinguishing Financial Liabilities with Equity Instruments
3. Seasonality
The Group`s operating results from normal trading activities for the second
half are historically better than those from the first half.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2011 30 June 2010 31 December 2010
Rm Rm Rm
4. Group segment analysis
Revenue
Paper 2 169.4 2 122.3 4 428.3
Plastics 714.5 618.8 1 309.9
Corporate and other
business * 131.8 236.2 542.0
3 015.7 2 977.3 6 280.2
Less: Inter-segment revenue (9.4) (8.8) (21.5)
Total revenue 3 006.3 2 968.5 6 258.7
Operating profit
Paper 244.6 216.8 526.0
Plastics 29.5 24.9 85.1
Corporate and other business *(81.8) (70.8) (132.1)
Total operating profit 192.3 170.9 479.0
Share of associates
profit / (loss) 1.6 (0.2) 3.4
Net finance costs (184.8) (198.5) (386.5)
Profit / (loss) before tax 9.1 (27.8) 95.9
Special items per
segment (included
in operating profit)
Paper - - 0.7
Plastics - 4.8 5.6
Corporate and other business 5.4 - -
Total special items 5.4 4.8 6.3
Assets
Paper 2 712.7 2 626.7 2 577.3
Plastics 1 078.1 984.8 1 028.0
Corporate and other
business 1 542.2 1 770.6 1 651.2
Total assets 5 333.0 5 382.1 5 256.5
* includes Paperlink its paper merchant division.
includes Paperlink its paper merchant division, goodwill and other intangible
assets.
5. Operating profit
Included in operating
profit are:
Amortisation of
intangible assets 12.0 20.7 41.4
Depreciation 145.9 135.7 278.1
6. Special items
Asset impairments - 4.8 6.3
Listing transaction costs 5.4 - -
5.4 4.8 6.3
7. Finance costs
Bank and other borrowings 191.1 207.9 416.3
Defined benefit arrangements 9.6 9.2 18.3
200.7 217.1 434.6
8. Pro forma
earnings/(loss) per share
and headline earnings
(loss) per share
Basic earnings/(loss) per
share (cents)
basic 1.0 (19.2) 22.4
diluted 1.0 (19.2) 22.4
Headline earnings/(loss)
per share (cents)
basic 0.8 (18.4) 23.1
diluted 0.8 (18.4) 23.1
The calculation of basic EPS and HEPS has been based on the profit for the
reported period, as shown below, and on 164,046,476 ordinary shares, which
represents the aggregate number of shares that were listed on 11 July 2011.
The Group was not a stand-alone entity prior to the demerger date. The number
of shares in issue has therefore been retrospectively applied to the
comparative period, so that meaningful comparison can be made.
The calculation of headlines earnings, based on basic earnings is as follows:
Rm Rm Rm
Basic earnings/(loss)
attributable to equity
holders of Mpact Limited 1.7 (31.5) 36.8
Asset impairments - 4.8 6.3
Profit on disposal of
property, plant and equipment
and intangible assets (0.5) (1.0) (1.6)
Related non-controlling
interests - (1.3) (1.4)
Related tax 0.1 (1.1) (2.2)
Headline earnings/(loss)
attributable to
equity holders of
Mpact Limited 1.3 (30.1) 37.9
Number of ordinary
shares
Number of shares in
issue * 164,046,476 164,046,476 164,046,476
Weighted average
number of shares used
for basic earnings per
share calculation 164,046,476 164,046,476 164,046,476
Weighted average
number of shares used
for diluted earnings
per share calculation 164,046,476 164,046,476 164,046,476
* The number of ordinary shares has been retrospectively restated, to
represents the aggregate number of shares in issue at listing date.
9. Dividend per share (cents)
No interim dividend is proposed.
10. Stated capital/Share capital and premium
Ordinary
Balance at beginning of period
(1 January 2010:159 950 shares
of R0.001 each) (1 January
2011:159 950 shares of
R0.001 each) - - -
Conversion to shares of no
par value 244.3 - -
Balance at end of period
(30 June 2011:23 192 750
shares with no par value)
(30 June 2010 and 31
December 2010:159 950 shares
of R0.01 each) 244.3 - -
Share premium - 244.3 244.3
Balance at beginning of
the period 244.3 244.3 244.3
Conversion to shares of
no par value (244.3) - -
Total issued stated
capital/share
capital and premium 244.3 244.3 244.3
By special resolution passed on 28 April 2011 the share capital of Mpact was
altered by: (a) increasing the authorised share capital from 1 000 000 shares
of R0.001 each to 1 500 000 ordinary shares of R0.001 each; (b) sub-dividing
all authorised shares from 1 500 000 ordinary shares of R0.001 each into 217
500 000 ordinary shares of R0.0000069 each (c) sub-dividing all issued shares
from 159 950 ordinary shares of R0.001 each into 23 192 750 ordinary shares of
R0.0000069 each; (d) converting all issued and authorised ordinary shares in
the company with a par value of R0.0000069 each into ordinary shares of no par
value.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2011 30 June 2010 31 December 2010
Rm Rm Rm
11. Borrowings
- Bank borrowings* 1 014.7 1 143.8 1 078.3
- Shareholder loans 2 740.8 2 598.4 2 490.5
- Finance lease liability 22.4 24.0 21.0
Long-term borrowings 3 777.9 3 766.2 3 589.8
Short-term borrowings
and short-term portion
of long-term borrowings 142.8 149.2 151.5
Total borrowings 3 920.7 3 915.4 3 741.3
* Comprises bullet and term loans.
Mezzanine and other loans.
The company`s borrowing powers are not restricted.
In July 2011, the company restructured its debt, refer to note 17.
12. Disposal of businesses
Pursuant to a written sale of business agreement between Mondi Limited and the
Company, dated 30 March 2011, the Company disposed of Paperlink,its paper
merchant division, to Mondi Limited, as a going concern, with effect from 1
April 2011, for a consideration of R93 million, payable in cash. The
consideration paid for the business was the value of the assets sold less the
value of the liabilities assumed by Mondi Limited.
13. Commitments
- Contracted capital
commitments 63.1 131.2 143.9
- Approved capital commitments 79.7 29.1 34.2
Capital commitments 142.8 160.3 178.1
These commitments will be met from existing cash resources and borrowing
facilities available to the Group.
14. Contingent liabilities
Loans and guarantees 13.0 7.3 13.2
There has been no change in the status of the contingent liabilities referred
to in the pre-listing statement issued on 31 May 2011.
15. Asset value per share
Asset value per share is disclosed in accordance with the JSE Listing
Requirements. Net asset value per share is defined as net assets divided by
the number of ordinary share in issue as at 30 June 2011(retrospectively
applied to the net assets of the comparative balance sheet). The number of
ordinary shares has been retrospectively restated to represent the aggregate
number of shares at listing date, 11 July 2011.
Net asset value per
share (cents) 111.6 74.5 110.4
16. Related parties
The Group has a related party relationship with its associates and joint
ventures. Transactions between the Company and its respective subsidiaries,
which are related parties have been eliminated on consolidation and are not
disclosed in this note.
The Group and its subsidiaries, in the ordinary course of business, enter into
various sales, purchase and services transactions with joint ventures and
associates and others in which the Group has a material interest. These
transactions are under terms that are no less favourable than those arranged
with third parties.These transactions in total are not significant.
There have been no significant changes to the related parties referred to in
the pre-listing statement issued on 31 May 2011.
17. Post-balance sheet events
The following post-balance sheet events occured that have no impact on the
Group`s reported financial position as at 30 June 2011:
With effect from 1 July 2011, the Company sold a 25% stake in its Recycling
business to Mondi Limited.
On 5 July 2011 the Company received an equity injection and its debt was
restructured. The Company drew down R1,790 million on its new banking
facilities and issued an additional 140,853,726 ordinary shares for a
consideration of R2,089.8 million. Funds were then applied to repay its old
bank borrowings of R1,143.8 million, Mondi Limited loans amounting to R2,664.9
million and Shanduka loan of R168.4 million.
On 11 July 2011, Mpact Limited listed on the Johannesburg Stock Exchange.
It is estimated that a further cost of R43 million will be incurred in
respect of the demerger and listing transaction in the second half of 2011.
Directors:
Non-Executive: AJ Phillips (Chairman), NP Dongwana, NB Langa-Royds, TDA Ross,
AM Thompson Executive: BW Strong (Chief executive officer), EL Leong
(Chief financial officer)
Company secretary: WR Somerville
Registered office:
4th Floor, No.3 Melrose Boulevard, Melrose Arch, 2196
(Postnet Suite #179, Private Bag X1, Melrose Arch, 2076)
Transfer secretaries:
Link Market Services South Africa (Proprietary) Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
(PO Box 4844, Johannesburg, 2000, South Africa)
Sponsors:
Rand Merchant Bank (a division of FirstRand Bank Limited)
1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196
(PO Box 786273, Sandton, 2146)
Disclaimer
This document including, without limitation, those statements concerning the
demand outlook, expansion projects and its capital resources and expenditure,
contain certain forward-looking views. By their nature, forward-looking
statements involve risk and uncertainty and although Mpact believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the forward-
looking statements as a result of, among other factors, changes in economic
and market conditions, success of business and operating initiatives, changes
in the regulatory environment and other government action and business and
operational risk management. While Mpact takes reasonable care to ensure the
accuracy of the information presented, Mpact accepts no responsibility for any
consequential, indirect, special or incidental damages, whether foreseeable or
unforeseeable, based on claims arising out of misrepresentation or negligence
arising in connection with a forward-looking statement. This document is not
intended to contain any profit forecasts or profit estimates.
Date: 11/08/2011 08:00:01 Produced by the JSE SENS Department.
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